The bulls have some time due to the oversold reading and extreme negative sentiment we saw late last week. That does not mean we will not see any weakness this week, only that weakness should be limited. I would be surprised to see us fall apart the way we did last week.
Tactically, I will look to ratchet back my net long exposure into strength (after raising it last week) as long as there is no progress in Europe. I believe that ultimately Europe will do whatever it takes but there does not seem to be a sense of urgency. It might require another scare in order to get the EU to act. As such, once we are no longer oversold there is little justification for being aggressively long.